The Development of Rates of Postage: An Historical and Analytical StudySmith, A. D. (Alfred Daniel)
History
The Development of Rates of Postage: An Historical and Analytical Study
Smith, A. D. (Alfred Daniel)
Postal rates
But it is doubtful whether inland distances are really comparable with
international distances. The cost of maintaining lines of communication
between distant countries is often altogether out of proportion to the
quantity of mails conveyed; and the sums paid, although ostensibly
payments for the conveyance of mails, are often really subsidies, paid
sometimes in order to assist the shipping or other industry, sometimes
for political purposes.[654] They cannot, therefore, be used as a basis
for calculating the amount of postage which should be charged on private
letters.
This was particularly the case in earlier times.[655] With the expansion
of commerce and the establishment for commercial purposes of regular
lines of steamers between the principal countries of the world, the task
of the Post Office has been much simplified, and, notwithstanding the
growth of mails, the cost actually reduced.[656] It is, however, still
heavy, and in some cases the payments include an element of subsidy. The
cost of transmission by sea of a foreign letter in the British service
is on the average 1/4d. Foreign rates are not, however, fixed on a
simple cost basis. The reduction to a penny of the letter rate between
Great Britain and all parts of the British Empire; between Great
Britain, Egypt, and the United States; and between the United States and
Germany and France, has been made from considerations of general
advantage, political or otherwise, rather than from considerations of
immediate profit or loss on the postal service.
The international parcel post has always been regarded as primarily
commercial,[657] and the service has been deliberately restricted to
small parcels on the ground that the conduct of an ordinary
transportation undertaking is not a postal function, and that the
admission of heavy parcels would render impossible the maintenance of
the postal principle of uniformity of rate. Parcel mails are in the
international service frequently denied the privilege of rapid
transmission accorded to letter mails.[658] The developments of the
present war have emphasized the essential distinction to be drawn
between communications on the one hand, and packages of goods sent by
parcel post on the other.
* * * * *
The general basis of postal rates is naturally affected in some degree
by the fact that the Post Office is a State undertaking, and the
propriety of Government control deserves consideration. Adam Smith,
with his individualistic leaning, was bound to touch on the question of
a State Post Office. He thought there was no objection to the conduct of
the Post Office by the Government,[659] and economists since his day
have generally followed his view.[660] This acceptance of State control
as theoretically justifiable has probably been induced by the logic of
facts rather than by the recognition of any peculiar characteristics
tending to that view discoverable in the postal service as an industrial
organization.[661]
Public-domain text, read in full here on John Shaqi.
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